North South University (NSU)

Research Report

On

Strategic analysis of Asian Paints in Bangladesh

Submitted to

Dr. M. Nazmul Amin

Department of Management

North South University

Submitted by

Evana Yasmin - ID 1935059090

Submission Date: 11-09-2021

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 Executive Summary

The Asia Pacific region occupies a substantial share in the global paints market to the presence
of numerous developing countries, including China, India, Vietnam and Bangladesh. According
to Researcher, the Bangladesh paints and coatings market is expected to witness a moderate
growth rate during the forecast period. Bangladesh is estimated to consume about 180,000 tones
of paint annually. Due to the rapid urbanization in the country it leads to an increase in
construction activities throughout the region. The paints & coatings industry plays an essential
role for increasing the economic growth by protection enabled by protective coatings & paint
manufacturers. This coating adds to the longevity of structures and assets by providing lesser
expenses.

Asian Paints Bangladesh is a customer-centric and technology driven organization. Currently it

is holding the second largest paint company in Bangladesh and its market share is 18% whereas
Berger Paints holds 48 % of the market share and the market leader in paint industry. Currently,
Asian Paints Bangladesh offers segments (products) like Royale Play, Royale Luxury Silk
Emulsion, Apex Ultima and Apcolite premium emulsion and Decora. They have also introduced
SmartCare Damp Proof Silicon ceramic which has excellent waterproofing capabilities and
doesn’t require an undercoat which is truly a unique product and groundbreaking in
Bangladesh’s market.

Asian Paints core competencies are corporate and brand image, their concept of mass
customization, and technology orientation with the help of research and development (R & D). It
has also focused on integrating Supply Chain Management (SCM) and Enterprise Resource
Planning (ERP) solution from SAP for robust and effective performance of their employees.
However, the paint industry’s net margin is decreasing from last two years because of increasing
of Covid-19 situation, remuneration, administration, technology etc. The prices of raw materials
are high and scarcity of raw materials. Hence, it becomes challenging to set up a competitive
price for attracting more customer by high-cost products offering and increasing more profit.
Another major challenge is to is to create eco-friendly coatings at competitive prices. However,
to gain more market share Asian Paints Bangladesh should give more effort on its marketing
strategy by introducing heart-touching advertisement and other promotional schemes. In

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addition, it should concentrate on digital marketing specially by providing more-interactive,
resourceful and user-friendly web page for the company.

Table of Contents
Chapter 1: Introduction

1.1 Introduction
1.2 Key Recent Industry Change

Chapter 3: External Analysis

Chapter 4: Internal Analysis

Chapter 5: Competitive strategies and Implementation

Chapter 6: Findings and Recommendations

Chapter 7: Conclusion

Chapter 8: Reference

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 1. Introduction
The Paints and Coatings Industry is one of the most profoundly structured industries in the
world. The sector consists of manufacturers of paints, varnishes, lacquers, shellacs, stains and a
variety of other specialty coatings. The Asia Pacific region occupies a substantial share in the
global paints market to the presence of numerous developing countries, including China, India,
Vietnam and Bangladesh. The paint industry in Bangladesh has virtually doubled in size over the
last 10 years and it is estimated to consume about 180,000 tons of paint annually and nearly Tk
40,000 million ($471 million) paint and coating industry has registered steady growth rates for
most of the last decade. This industry leads to an increase in construction activities throughout
the region and plays an essential role in the infrastructural development of Bangladesh by
ensuring the protection of fixed assets. The paint industry is divided mainly into two segments
viz. Decorative and Industry. The Decorative segment includes household paints (interior wall
finishes, exterior wall finishes, enamels and wood finishes). The industry segment includes
industrial paints, automotive coatings, OEM paints, powder coatings etc., in which Asian Paints
comes at 3rd place after Kansai Nerolac and Akzo Nobel. It is also a matter of pride that Asian
Paints have been awarded "Superbrand" status since 2009 in Bangladesh - and is seen as one of
the most respected corporate entities in the country. Asian Paints Bangladesh Limited is an ISO
9001: 2015 and ISO 14001:2015 certified company.

As the decorative segment is less technology-dependent, some unorganized players also consume
a small fraction of the market share. However, the industry segment is highly technology-
dependent and entirely have organized players. Major players in the market were found to be
Berger Paint Bangladesh Limited, Asian Paint, Roxy Paint Limited, Kansai Nerolac Paints
Bangladesh Limited, Rak Paints and Aqua Paints among others. Above 80% of the country's
paint market is in the hands of foreign brands. Currently, nearly 50 companies operate in the
sector in the country. Berger Paints Bangladesh is the market leader in the Bangladesh paint
industry. According to data from the Bangladesh Paint Manufacturers Association, Berger Paints
holds 48 % of the market share, followed by Asian Paints at 18 %, Roxy and Elite at 7 %, Pailac

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at 5% and Aqua Paints at 2%. Some 30 local companies, including Rainbow Paints, RAK and
Uzala Paints, hold 13% percent of the total market share.

Asian Paints Bangladesh is the second-largest paints and coating producer in Bangladesh. The
company has its state-of-the-art production plant at Gazipur. Asian Paints invested a total of $20
million in the new plant, which was expected to go into production by June 2021. The new
factory will initially manufacture 30,000 tons of paint and allied products and spread over 20
acres of land, the factory will be equipped with modern technologies and facilities.

Key Recent Industry Changes:

The paint companies are finding it difficult to survive because of the rising prices of raw
materials and a decline in paint consumption in the real estate sector [1]. Moreover, the
government implemented an abrupt shutdown on the entire supply chain in the last fortnight of
the financial year to contain the spread of the pandemic. The year, thus, ended at a significantly
lower growth rate for the paint industry as compared to the previous year. In such a difficult
business environment, the soft raw material prices played a saving grace, helping the paint
industry to not only maintain its operating margins, but also support the weak demand with some
price reductions for customers in the market [2].

2. External Analysis

A company’s external environment includes all relevant factors & influences outside the
company’s boundaries; by relevant, means important enough to have a bearing on the decisions
the company ultimately makes about its direction, objectives, strategy, & business model.

Every business and organization operate in a changing world and are subject to forces which are
more powerful than they are, and which are beyond their control. Just as a ship at sea is subject
to powerful natural forces of which it needs to be aware and deal with, organizations are
influenced by forces in their external business environment. Any business strategy needs to take
account of all these forces so that opportunities and threats can be identified and the organization
can navigate its way to success by matching its internal strengths to external opportunities. There
are six principal components: political factors; economic conditions; sociocultural forces;
technological factors; environmental forces; and legal and regulatory factors and each of these
components has the potential to affect the firm’s more immediate industry and competitive

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environment. An analysis of the impact of these factors is often referred to as PESTEL analysis.
Along with this there are some other factors necessary to analyze as an external analysis as:
industry structure; strategic group mapping; competitor analysis and last but not the least critical
success factors.

The central components of external analysis are:

2.1 The macro-environment.

The purpose of the macro-environment analysis is to identify possible opportunities and threats
that will impact on the strategy of the industry as a whole. Macro environment of paint industry
of Bangladesh is divided into four segments- economic, technological, socio-cultural and
environmental.

2.2.1 Economic conditions

Economic conditions include the general economic climate and specific factors such as interest
rates, exchange rates, the inflation rate, the unemployment rate, the rate of economic growth,
trade deficits or surpluses, savings rate and per-capita domestic products.

The paint industry in Bangladesh is expected to grow by 8 to 10 percent per annum as there is
scope for increase in consumption backed by economic growth. However, there are some major
factors slowed down the sector's growth to a great extent in recent times. The rise of raw
materials prices in international markets, depreciation of the local currency and new
supplementary duties are the major facts of slowing down the economy. The last but not the
least, excessive land prices are also restricting the urban market’s growth. Around 80 percent of
the housing sector cost is related to land price and if the housing sector does not grow, it will
affect paint and other building materials industry.

2.2.2 Technological factors

Technological factors include the pace of technological change and technical developments that
have the potential for wide-ranging effects on society. Technological innovation will provide a
basis for the creation of new companies and the decline of others. This factor includes
institutions or industry involved in creating new knowledge and controlling the use of

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technology with the help of R & D, university sponsored technology, patent and government
laws, and government control over the technology.

Asian Paints is a technology driven company based on strong R & D facility which is worked as
the heart of all innovations and creativity. With the help of technological innovation, company
allows their consumers to customize their shades of color that match with their tastes and
preferences. Asian Paints in Bangladesh has one centralized system for managing all customer
data known as Customer Management System (CRM), which provides the greater visibility into
customer needs and market demands. Now, it is available for use in campaign management and
in the development of predictability models, among other activities. Because of the availability
of real time data and information, ad-hoc reporting can be generated instantaneously and rapidly
whenever it is required.

2.2.3 Socio-cultural factors

Sociocultural forces include the social values, attitudes, cultural influences, and lifestyles that
impact demand for particular goods and services, as well as demographic factors such as the
population size, growth rate, and age distribution. Sociocultural forces vary by local and change
overtime.

The social aspects like people are more concerned and involved in the painting process now a
days. People are having low interest loan from Bank to buy a new house, hence getting chance to
color it as they want. Increasing of urbanization, progress of ship-building industry and change
of people mind set and consistent economic growth is also act as catalyst for industry growing.
The increase in the middle class also helps to boost the demand of the paint. Every color has its
socially acceptance. For different need of the different cultures like Pohela Boishak, EID, Durga
Puja, etc., people like to paint from their perception which increases the economic growth of
paint industry in Bangladesh.

2.2.4 Environmental forces

These include ecological and environmental forces such as weather, climate, climate change, and
associated factors like water shortages. These factors can directly impact on industries. Paint
Industry is committed towards its obligations regarding keep the environment clean and healthy.
Research and Development is being directed more and more towards water based and water thin-

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able products with lower consumption of petroleum solvent. Therefore, they are serving a dual
purpose of providing environment friendly products along with preserving scarce petroleum-
based solvents.

2.2 Industry Structure.

Porter's five forces analysis is a framework for diagnosis the principal competitive pressures in a
market and business strategy development formed by Michael E. Porter of Harvard Business
School in 1979. Porter argues that the aim of the strategist is to recognize and handle a
competitive environment by directly looking at competitors, or to contemplate a broader
perspective that competes against the organization (Porter, 1979)[3].

The five competitive forces are:

2.2.1 Bargaining power of buyers.

The Bargaining Power of Buyers refers to the power of buyers who can limit industry
profitability by demanding price concessions, better payment terms, or additional features and
services that increase industry member’s cost. When there is a monopoly market situation,
buyers have the greatest bargaining power when they are large and are able to switch
comfortably to alternative suppliers that are few in numbers (Slater & Olson, 2002)[4]. When
buyers are powerful, sellers may develop ways where buyers are prepared to pay a premium
price for some products.

The markets for paint industry include dealers, retailers and industrial concerns. There are large
number of players in the paint market who are providing their services with their particular cost,
quality and individuality. Hence, customer can quickly switch in between suppliers. Since
customer switching cost is low, the paint industry has a high bargaining power when it comes to
the buyer.

2.2.2 Barraging power of suppliers.

Whenever, the suppliers of industry members represent a weak or strong competitive force
depends on the degree to which suppliers have sufficient bargaining power to influence the terms
and conditions of supply in their favor. Suppliers with strong bargaining power are a source of

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competitive pressure because of their ability to change industry members higher prices, pass
costs on to them, and limit their opportunities to find better deals.

The paint industry is highly dependent on raw materials which are mostly imported from abroad
and it is very costly. The raw material can be divided into different categories like pigments,
additives, solvents, binders etc. Titanium Dioxide is one of the key pigments used in the
production of paint and is facing a global supply shortage. As the paint companies have no other
option rather than importing, so the bargaining power of the foreign suppliers are very strong.

2.2.3 Rivalry among competitors.

The strongest of the five competitive forces is often the rivalry for buyer patronage among
competing sellers of a product or service. The intensity of rivalry among competing sellers
within an industry depends on a number of identifiable factors such as:

1. when buyer demand is growing slowly or declining

2. products become less costly for buyers to switch brands
3. the products of rival sellers become less strong differentiated
4. Industrial growth is slow
5. Low barriers exist for the new entry.

In case any additional companies compete, it will result in more competitive pressure that will
affect prices and profits; hence the strategies will change (Baptista, & Preto, 2010).[5]

The current market growth rate may provide sufficient room for all the players of the paint
industry to grow. Currently, nearly 50 paint companies operate in this sector in Bangladesh and
Berger is holding majority of the market share, nearly 58%. Whereas, Asian Paints is only
holding 18% of market share followed by Elite, Roxy, Pailac and others respectively. Here,
rivalry among competitors is present as Asian Paints is the second largest position in Paint
industry. It has to face strong competition with Elite, Roxy and other local manufacturing
company rather than Berger paints Bangladesh as it is holding majority of the market share and
has more controlling powers than Asian Paints.

2.2.4 Threat of substitute products.

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Companies in one industry are vulnerable to competitive pressure from the actions of companies
in a closely adjoining industry whenever buyers view the products of the two industries as good
substitutes. The substitutes can impact on the company’s cost of products, so therefore, reduces
profits. Inversely, lower substitute prices can increase sales and lower attract more consumers.

The availability of substitute in this industry is very minimum but the varieties of products are
more. There are a good number of local paint manufacturing companies and all of them are
producing which mean that there are many direct substitutes for most paint products. On the
other hand, many people use wallpaper instead of wall painting which are alternative option for
decorative walls. Thus, the availability of substitutes in the Bangladesh Paint Industry is
moderately high.

2.2.5 Threat of new entrants.

New entrants into an industry threaten the position of rival firms since they will compete fiercely
for market share, and to the number of industry rivals, and add to the industry’s production
capacity in the process. Threat of new entry often prompts industry members to lower their
prices and initiate defensive actions in an attempt to deter new entrants. Furthermore, new
entrants can disrupt established companies in a particular market as well as directly affect the
competitive advantages of the firm. The threat of entry is low in industries where incumbent
firms are likely to retaliate against new entrants with sharp price discounting and other moves
designed to make entry unprofitable. The threat on new entry is also low when entry barriers are
high. An additional supply of goods or services will decrease profit margins of the market
participants because of not increasing or decreasing the demand of a particular goods or services.
Porter (1985) differentiates seven critical barriers to enter the market, (a) supply-side economies
of scale, (b) demand-side benefits of scale, (c) customer switching cost, (d) capital requirements,
(e) incumbency advantages independent of size, (f) unequal access to distribution channels, and
(g) restrictive government policy. [4]

As the entry barriers are low it increases the threat of new entrants in paint industry. The pain
companies are spread in worldwide, existing players faces huge threat to the international
companies as well as local companies. As the local players do not focus on quality but sell
products for cheap rates, they capture more attention of middle-class people in Bangladesh.

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2.3. Strategic group mapping

Strategic groups can be defined as a group of companies within a particular industry that follows
a similar strategy or similar business model. The companies that are part of the same strategic
group have more competition with the members of the strategic groups than the competitors
outside the strategic group. Strategic blocks are groups of companies within an industry that
exhibits denser strategic links among themselves than with other companies in the industry.
Companies in the same strategic group can resemble one another in a variety of ways. They may
have comparable product-line breadth, sell in the same price/quality range, employ the same
distribution channels, depend on identical technological approaches, compete in much the same
geographic areas, or offer buyers essentially the same product attributes or similar services and
technical assistance.

Though Asian Paints is the second position holding in paint industry in Bangladesh its business
strategy is quite similar to Berger Paints in Bangladesh. Asian paints and Berger paints can
resemble one another in a variety of ways regarding strategic group. Both companies are
technology driven and R & D based and offers max customization of color palate or color bank,
same product-line breadth, same pricing strategy and compete in the same geographic areas.

2.4. Driving forces

All industries are affected by new developments and ongoing trends that alter industry condition,
some more speedily than others. Industry and competitive conditions change because forces are
pressuring certain industry participants (competitors, customers, suppliers, complementors) to
alter their actions in important ways. The most powerful of the change agents are called the
driving forces. They have the biggest influences in reshaping the industry landscape and altering
competitive conditions. Some driving forces originate in the outer ring of the company’s macro-
environment whereas most originate in the company’s more immediate industry and competitive
environment. While many forces of change may be at work in a given industry which are
qualified enough as major determinants of industry changing. However, the major driving forces
of industry change are identified as:

1. Changes in the long-term industry growth rate

2. Increasing globalization

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 3. Emerging new Internet capabilities and applications
4. Shifts in buyer demographics
5. Technological change and manufacturing process innovation
6. Product and marketing innovation
7. Entry or exit of major firms
8. Diffusion of technical know-how across companies and countries
9. Changes in cost and efficiency
10. Reduction in uncertainty and business risk
11. Regulatory influences and government policy changes
12. Changing social concerns, attitudes, and lifestyles.

The main driving forces of Asian Paints are depicted as below:

Increasing level of income and education – Bangladesh is a densely populated country and
there has been considerable rise in the proportion of young population. Also, an increasing trend
in the disposable income has been observed which is leading to a change in consumer habits. The
Bangladesh economy is shifting from a savings economy to a spending economy as it is shifted
from lower-income country to middle-income country and hence people are opting for better
products and paint is no exception. Education plays an important role for making people brand
conscious and seek value for their consumption. As far as paint is concerned, the companies
offering additional features like non-toxicity, weather protection, texture, eco-friendly
production, etc. which attracts more demand these days. These products also help the
manufacturers earn a better premium as compared to the regular paints. Therefore, it creates a
scope of earning high margin in market economy.

Increasing Urbanization - Due to urbanization, people are shifting from temporary houses to
permanent houses and looking for well-designed interior and exterior aspect. As a result, more
houses being painted using medium and premium paints. This increases the overall demand of
the paint industry.

Availability of financing options - Now a days, banks are offering easy financing loan for
housing and automobile. As a result, people like to buy houses and travel in personal vehicles.
This in turn drives the growth of housing and automobile sector for which paint industry get its
share.

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Growth of Realty, Automobile and Infrastructure sector – Paint industry is highly dependent
on development of real state and housing sector and shipbuilding industry. For the total paint
demand, over 70% is generated from the decorative segment. Automobile segment generates
over 66% of the demand of industrial paint. Infrastructure segment creates direct and indirect
demand for paints through supporting the growth of the realty, automobile, shipbuilding and
other industries where paint is used. The growth potential in the 3 sectors is immense and paint
industry being dependent on these is expected to show strong growth.

2.5. Critical success factors

An industry’s key success factors (KSFs) are those things that most affect industry members’
ability to prosper in the marketplace are: Particular strategy elements; product attributes;
Resources; Competencies; Competitive capabilities; Business outcomes that spell the difference
between profit & loss (Thomson & Strickland, 2007). There are three important questions to help
in identifying CSFs of a company: On what basis do customers choose between the competing
brands of sellers? (What product attributes?); What resources and competitive capabilities does a
seller need to have to be competitively successful? and What does it take for sellers to achieve a
sustainable competitive advantage?

Asian paints ltd is a customer-centric and consistently innovative company. Paint is highly raw
material intensive commodity and the key success factor of Asian Paint can be as the quality of
raw materials they use in their product. Another competitive advantage is their R & D
department and their consistently efforts in formulating and reformulating products for better
performance, cost reduction, new application, shade development and exploitation of new
materials. At Asian Paints, they believe in an open and collaborative work culture which has
become a hallmark of the company.

3. Internal Analysis

The internal environment means having a detailed look at the company to determine
performance levels, strengths and weaknesses for all the resources it is dealing with now or in
the near future. The analysis must be objective in order to give the correct picture of the
company's real potential, known as strengths and weaknesses. (Barney, 1997)[6]. A company’s
resources and capabilities represent its competitive assets and are determinants of its

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competitiveness and ability to succeed in the market place. Resources are inputs into a firm’s
production process. They cover a spectrum of individual, social & organizational phenomena,
such as capital, equipment, the skill of individual employees, patents, finance & talented
managers. In addition, capabilities refer to ‘an organization’s skills in coordinating its resources
& putting them to productive use’ OR ‘Are the capacities for a set of resources to perform a task
or activity in a consolidative way’.

3.1 Core Competencies

It refers to resources and capabilities that serve as a source of competitive advantage for a firm
over its rivals and competitive advantage refers to any factor that allows an organization to
differentiate its product from those of its competitors. A sustained /sustainable competitive
advantage occurs when a firm implements a value-creating strategy of which other companies
are unable to duplicate the benefits or find it too costly to imitate.

3.1.1. Mass Customization

Mass customization is a process that allows a customer to personalize certain features of a

product while still keeping costs at or near mass production prices. Companies that offer mass
customization can give themselves a competitive advantage over other companies that only offer
generic products. At Asian Paints website, customers get Various options to simply try with
different option of colors, variety of paints, interior décor themes and interact with an expert.
One of the options available is the "Colourpro" 360-degree service. Here the customers have
various options to mix and match their color combination styles [7]. The company has also
introduced the concept of multiple shade choice to the Bangladeshi consumer in most of its
emulsion paints. The launch of multiple shades in its Apcolite range of emulsions will provide to
Bangladeshi consumers, a wide choice of customized colors for the first time that was not
previously provided by any paint company in Bangladesh. [8]

3.1.2 Research and Development

At Asian Paints, Research and Development (R&D) plays an important role in developing new
products and innovations, and reducing costs by value re-engineering of formulations. Asian
Paints Bangladesh has an elaborately set up R&D facility with 200 scientists conduct it and has
always backed the company's business plan and demands of the market place. They undertake

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rigorous analysis, tests, and experiments to ensure quality products meet all requirements and set
the benchmark in the industry. Here is where most of their paint development and testing for
architectural and industrial application takes place. They also have a microbiology lab, a modern
instrumentation lab, and a resin and functional polymer development lab.

3.1.3 Corporate and brand image

Asian Paints is the India’s largest paint company and it is the second largest paint company in
Bangladesh Paints’ industry. Asian Paints Bangladesh Ltd. started its journey in the year 2002 as
a joint venture with Confidence Cement to produce top class range of paints for the multi-
segmented consumers of Bangladesh. At present it covers 64 districts, a 1,400 plus supportive
dealer network to meet the painting demand of all category of consumers across Bangladesh.

3.2 SWOT Analysis

SWOT analysis is a simple but powerful tool for sizing up a company’s strengths and
weaknesses, its market opportunities, and the external threats to its future well-being. It can be
used effectively to build organizational strategy and competitive strategy. SWOT Analysis is
therefore a significant tool for situation analysis that helps to identify organizational and
environmental factors. SWOT Analysis has two dimensions: Internal and external. Internal
dimension includes organizational factors, also strengths and weaknesses, external dimension
includes environmental factors, also opportunities and threats [9].

3.2.1. Strengths

 Asian Paints Bangladesh believes in making the best products suited to these market
demands. They have always challenged the status quo with a slew of innovations.
 They have the biggest R & D center with heart of all innovations and technology along
with state-of-the-art laboratories to deliver the best of their innovative products.
 Asian paints Ltd, is the first industry in Bangladesh offering a warranty on paints which
is a testimony of their quality.
 Asian paints have interesting offer named “One wall” makeover concept of Royale Play
for their customers who love to experiment and always on the lookout for something
new.

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  It is the first industry in modern paint retailing formats with Color Ideas and Ezycolour
stores and therefore enjoys first mover advantages.
 Asian Paints’ product line enables them to cater to various market and customer
segments. Their new offerings like Royale Play, Royale Luxury Silk Emulsion, Apex
Ultima and Apcolite premium emulsion and Decora have garnered amazing customer
response. This enables them to penetrate various business segments of society which
helps them to retain market share. Asian Paints in Bangladesh have bolstered their
exteriors range with new product SmartCare Damp Proof Silicon ceramic which has
excellent waterproofing capabilities and doesn’t require an undercoat. It is truly a unique
product and groundbreaking in Bangladesh’s market.
 Asian Paints is a superior technology driven company which has focused on integrating
Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) solution
from SAP.
3.1.2 Weaknesses
 Limited market share in industrial paints segment in compare to Berger Paints Ltd.
 Products may become obsolete with dynamic trends as the customer tastes and
perceptions changes very rapidly, hence production planning and inventory problem
arises.
 Lack of access to the best natural resources and key distribution channels.
 High cost for importing raw materials.
3.1.3 Opportunities
 Demands on paints are increasing based on customer perceptions and climate changes.
 There is a good scope for growth especially in industrial paints category.
 Removal of international trade barriers leverage their opportunities to international
market.
3.1.4 Threats
 Emergence of substitute products.
 Raw material scarcity and volatility in prices.
 Customer switching cost is low as Asian paints are facing strong competition with Kansai
Nerolac, Elite Paint and some local paint company in Bangladesh.

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 4 Competitive Strategies and Implementation

A company’s competitive strategy deals exclusively with the specifies of management’s game
plan for competing successfully-its specific efforts to position itself in the marketplace, please
customers, ward off competitive threats, and achieve a particular kind of competitive advantage.
There are two biggest factors that distinguish one company’s competitive strategy to another are-
(1) whether a company’s market target is broad or narrow and (2) whether the company is
pursuing a competitive advantage linked to lower costs or differentiation. Asian paints
Bangladesh Ltd generally focuses on two major strategies are: focus/niche strategy and
differentiation strategy.

4.1 Focus/Niche Strategy: A focus strategy is an integrated set of actions designed to produce
or deliver goods or services that serve the needs of a particular competitive segment. It
involves concentrated attention on a narrow piece of the market and serves niche buyers
better than rivals. This strategy develops unique capabilities to serve that market segment
where buyers have distinctive preferences, special requirements, or unique needs.

Asian Paints in Bangladesh introduces a premium product Royale emulsions range for
customers who want the best in interiors. They also offer Royale Luxury Shyne and Royale
Luxury Silk and Royal Play which is an interesting “One wall” makeover concept for high
income group customers who love to experiment and always on the lookout for something
new and innovative. In addition, Apcolite Premium Emulsion is their champion product and
ideal for customers who want trusted products at the best value.

4.2 Differentiation Strategy: Differentiation strategies are attractive whenever buyers’ needs
and preferences are too diverse to be fully satisfied by a standardized product offering. A
broad differentiation strategy achieves its aim when a wide range of buyers find the
company’s offering more appealing than that of rivals and worth a somewhat higher price.
Differentiation enhances profitability whenever a company’s product can command a
sufficient higher price or generate sufficiently bigger unit sales to more than cover the
added costs of achieving the differentiation. A company can pursue differentiating features

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 from many angles: multiple features; wide selection and one-stop shopping; superior
service; high fashion design; quality manufacturing, technological leadership etc.
Asian Paints pricing strategy helps the brand/company to position itself competitively in the
market and achieve its business goals & objectives. Its products are priced higher than its
competitors due to the quality and standards maintained by the company. Asian Paints’
primary target consumers are construction company and contractors hence it provides
volume discounts for exclusive purchase of Asian Paints products. By this strategy they are
keeping good consumer relationship with customers and also with the dealers by proving
discount on bulk purchase, annual prize giving etc. Asian paints introduce products like
Apex Ultima Protek and Apex Ultima for targeting middle income group customers. Apex
Ultima Protek is the gold standard in exterior emulsions and offers waterproofing with
warranty. Moreover, its new product SmartCare Damp Proof Silicon ceramic which has
excellent waterproofing capabilities and doesn’t require an undercoat. It is truly a unique
product and groundbreaking in Bangladesh’s market. [10] For the mass-market, they have
introduced Utshob Super Saver Emulsion, a new category of plastic paint at the price of
Distemper. These are high quality products and designed to target those customers who are
price cautious and lower-income group.

4.2 CSR Policy

Corporate Social Responsibility is a management concept whereby companies integrate social

and environmental concerns in their business operations and interactions with their stakeholders.
Asian Paints is committed to maintain and deliver its responsibility for the sake of the society’s
benefits through a variety of philanthropic and benevolent activities. It includes supporting the
basic infrastructure ecosystem to enable quality education along with scholarships for students
who require financial support in completing their education and also renovate school buildings.
Their programmes include coaching for competitive examinations and sponsoring school buses.
Asian paints group conduct awareness sessions on sexual health, hygiene and water literacy and
are helping drop outs from schools to return back via the incentive of experiential learning and
academic camps. Asian Paint Bangladesh Ltd is focusing to empower their painters as CSR
activities. They are conducting regular health check-up programs and providing them with health
insurance. To ensure safety and avoid accidents along with increasing their skills they arrange

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“Painter Training Programs” with the partnership of the Bangladesh Government so that they
receive government certification. [10]

 Gyan Shakti programme for school adoption: - Through the three-year programme they
offer a holistic approach to education for students between third and eighth grade
focusing on the following:
1. Remedial education in Mathematics, other Science subjects and English
2. Technology-oriented learning experiences
3. 21st century skills focusing on communication, creativity, collaboration, critical
thinking and digital literacy
 Facing Crisis: - To battle the current COVID-19 situation, Asian Paints Bangladesh Ltd.
has extended a helping hand to support the local community. To serve and ensure the
safety of the general population who are bound to step out of their homes for work, thirty
wash basins have been installed at some of the most populated areas in Dhaka city.

5 Findings and Recommendation

The paint industry’s net margin is decreasing from last two years because of increasing of Covid-
19 situation, remuneration, administration, technology etc. Raw Material is a major cost-driver in
paint industry. The prices of raw materials are high and scarcity of raw materials. Bangladesh
paint industry is classified mainly into decorative paints and industrial paints in which
Decorative paints of Asian Paint are considered to be less technology oriented as compared to
industrial paints. One of the major challenges of Asian Paint is to create eco-friendly coatings at
competitive prices. In addition, it is a drastic problem related to Asian Paint Bangladesh is
damage to the environment and humans due to use of various chemical in the production of
different types of paints.

The Asian Paint should increase their efficiency regarding marketing strategy specially for
selling their products by various efforts like advertising and other promotion schemes. The
advertising should be heart-touching and clear to understand so that customer can feel the right
message and carry it during next decision. Moreover, the company should use competitive
pricing strategy for some of its products which are competing with Berger and Elite paint
products in the market. Asian paint in Bangladesh should concentrate on digital marketing

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specially by providing more-interactive, resourceful and user-friendly web page for the company
as Asian Paints, India is providing right now.

6 Conclusion

Asian Paints Bangladesh Ltd is the second largest market share holding company in Bangladesh
and it is the market leader company in India and holding the 3 rd position in Asia. The company
sells their product in world-wide and also provides some corporate social responsibilities in
particular country. Asian paint Bangladesh is a customer-centric and innovative based company
and every product is designed and developed after extensive consumer interactions and
identifying their needs and requirements. They have developed a trusted relationship with their
dealer and paint network which has been their biggest strength. Their “One wall” makeover
concept is interesting and extra-ordinary deliver for the customer. It introduces a unique product
SmartCare Damp Proof Silicon ceramic which has excellent waterproofing capabilities and
doesn’t require an undercoat. This product obviously becomes the hallmark and ground breaking
in Bangladesh’s market. Today there are more than 850 Color Worlds (outlets with automatic
color dispensing machine for delivering a wide range of shades within minutes) in the country
which has ensured even better servicing of customer needs. It is also a matter of pride that Asian
Paints have been awarded "Superbrand" status since 2009 in Bangladesh - and is seen as one of
the most respected corporate entities in the country. If Asian Paints Bangladesh Ltd, work on
more about their marketing strategy regarding price competitiveness, advertising and
promotional schemes then in future, they can gain more market share in Paint Industry in
Bangladesh.

7 Reference

[1] “Prospects of paint industry _ The Daily Star.” .

[2] “TRANSFORMING.”

[3] M. E. Porter and M. E. Porter, “How Competitive Forces Shape Strategy,” Harvard Business Review. p. 10,
1997, [Online]. Available: https://hbr.org/1979/03/how-competitive-forces-shape-strategy.

[4] G. H. T. Bruijl, “The Relevance of Porter’s Five Forces in Today’s Innovative and Changing Business
Environment,” SSRN Electron. J., no. December, 2018, doi: 10.2139/ssrn.3192207.

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[5] Y. Hole, “Porter ’ s Five Forces Model : Gives You A Competitive Advantage,” no. January, 2021.

[6] E. T. Al – Rawashdeh, “Factors of the Internal Environment and Their Impact on Organizational Excellence
in the Public Universities in Southern Jordan from the Point of View of Workers,” Int. Bus. Res., vol. 12, no.
4, p. 175, 2019, doi: 10.5539/ibr.v12n4p175.

[7] P. Kaushal, “32 Preeti Kaushal,” no. April 2016, pp. 1892–1893, 1942.

[8] “Customer Satisfaction at Asian Paints Bangladesh Limited - Assignment Point.” .

[9] HASRA HARTINA, “нской организации по разделу «Эпидемиологическая безопасностьNo Title,”

Manaj. Asuhan Kebidanan Pada Bayi Dengan Caput Succedaneum Di Rsud Syekh Yusuf Gowa Tahun, vol.
4, pp. 9–15, 2017.

[10] “Ritesh Doshi, CEO, Asian Paints Bangladesh - ICE Business Times.” .

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